By Will Feuer
Polaris, the powersports-vehicle maker based in Medina, Minn., has issued a disappointing sales and earnings forecast for the full year, citing higher costs and lower sales volume that have put pressure on profits.
In the fourth quarter, the company reported a profit of $103.4 million, or $1.81 per share, compared to $195.5 million, or $3.34 per share, in the same period the previous year.
After excluding restructuring costs and other one-time items, earnings per share were $1.98. Analysts surveyed by FactSet had expected adjusted earnings of $2.57 per share.
Sales also fell by 5% to $2.29 billion, primarily driven by a decline in on-road vehicles and boats. FactSet analysts had predicted sales of $2.25 billion.
Looking ahead to 2024, Polaris is targeting a sales drop of 5% to 7%. The company also anticipates a decline in adjusted earnings from continuing operations of 10% to 15% this year.
Polaris' Chief Executive, Mike Speetzen, acknowledged that operational challenges had impacted the company's fourth-quarter earnings.
"Based on our outlook, certain sectors within our industry are expected to face ongoing challenges throughout 2024," Speetzen noted.
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